MC Mining CEO David Brown. Picture: ROBERT TSHABALALA
MC Mining CEO David Brown. Picture: ROBERT TSHABALALA

MC Mining’s share price jumped 12% to R14 on Monday morning after it announced its R70m acquisition of two properties for its Makhado coal project.

Its share price has more than tripled since it announced the deal in November.

Image: Iress

The group, formerly called Coal of Africa Limited, said the deal was conditional on approval from Limpopo’s regional land claims commissioner.

“The acquisition of Lukin and Salaita completes the suite of surface rights required for our flagship Makhado project and the initial tranche of the purchase price was settled using internal cash flows,” said MC Mining CEO David Brown.

“The transaction will facilitate the commencement of the final geotechnical drilling and related studies required for the siting of the mine’s infrastructure. In parallel, we continue to progress offtake negotiations for the balance of the Makhado coking and thermal coal as well as discussions with potential funders.”

laingr@businesslive.co.za